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5.22 Double Entry Book Keeping (Section A)—ISC XII

Revaluation A/c ...Dr. 75,000
To Karun’s Capital A/c 37,500
To Som’s Capital A/c 22,500
To Mehar’s Capital A/c 15,000
(Being the transfer of gain (profit) on revaluation)
Mehar’s Capital A/c ...Dr. 5,000
To Loan to Mehar A/c 5,000
(Being the transfer of Loan to Mehar to his Capital Account)
Mehar’s Capital A/c ...Dr. 1,24,000
To Mehar’s Executor’s A/c 1,24,000
(Being the transfer of Mehar’s Capital Account to his Executor’s Account)
Mehar’s Executor’s A/c ...Dr. 24,000
To Bank A/c 24,000
(Being the partial payment made to Mehar’s Executor)

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Karun Som Mehar Particulars Karun Som Mehar
` ` ` ` ` `
To Bank A/c (Drawings) ... ... 25,000 By Balance b/d 3,37,500 2,37,500 1,85,000
To Goodwill A/c 12,500 7,500 5,000 By Revaluation A/c 37,500 22,500 15,000
To Profit and Loss A/c 1,87,500 1,12,500 75,000 By Karun’s Capital A/c ... ... 21,875
To Mehar’s Capital A/c 21,875 13,125 ... By Som’s Capital A/c ... ... 13,125
To Profit and Loss By Investment Fluctua-
Suspense A/c ... ... 5,000 tion Reserve A/c 8,750 5,250 3,500
To Loan to Mehar A/c ... ... 5,000 By Workmen Compen-
To Advertisment sation Reserve A/c 3,750 2,250 1,500
Expenditure A/c 2,500 1,500 1,000
To Mehar’s Executor’s A/c ... ... 1,24,000
To Balance c/d 1,63,125 1,32,875 ...
3,87,500 2,67,500 2,40,000 3,87,500 2,67,500 2,40,000

BALANCE SHEET OF KARUN AND SOM as at 1st August, 2019
Liabilities ` Assets `
Trade Creditors 1,33,900 Unexpired Insurance 5,000
Mehar’s Executor’s A/c 1,00,000 Patents 2,00,000
Profit and Loss Suspense A/c 5,000 Machinery 1,75,000
Employees’ Provident Fund 20,000 Stock 30,000
Provision for Outstanding Legal Charges 5,000 Sundry Debtors 62,000
Workmen Compensation Claim 10,000 Less: Provision for Doubtful Debts 3,100 58,900
Karun’s Capital 1,63,125 Cash at Bank 1,01,000
Som’s Capital 1,32,875 2,96,000
5,69,900 5,69,900